> ## Documentation Index
> Fetch the complete documentation index at: https://docs.hitaji360.com/llms.txt
> Use this file to discover all available pages before exploring further.

# Payment Terms

> Payment terms tell Hitaji when an invoice or bill is due — and, when you want it, how to split the total into several instalments with their own due…

Payment terms tell Hitaji **when** an invoice or bill is due — and, when you want it, how to split the total into several instalments with their own due dates. Instead of typing a due date on every document, you set up a term once (for example, "Net 30" or "50% on order, 50% in 30 days") and pick it when you raise the document. Hitaji then computes the due dates and instalment amounts for you.

**You'll find this at:** `/settings/erp/finance/payment-terms` — in the left navigation under **Settings → ERP / Finance → Payment Terms**. (The older link `/accounting/settings/payment-terms` redirects here.)

> 📷 *Screenshot: Payment Terms settings page listing each term with its instalment rows — to be added.*

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## Multi-business note

Payment terms are stored **per business**. Each business keeps its own catalog of terms and its own default term. Switch the active business with the business switcher before adding or editing terms.

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## What a payment term contains

A payment term is a small set of **rows**. Each row is one instalment and specifies:

* **Due days after invoice** — how many days after the document's issue date this portion becomes due.
* **Portion percent** — what share of the grand total this instalment represents. **All rows must add up to exactly 100%.**
* **Discount percent** (optional) — an early-payment discount for this instalment.
* **Discount days after** (optional) — how many days after issue the early-payment discount remains valid.

A simple "Net 30" term is a single row: *100% due 30 days after invoice*. A split term might be two rows: *50% due in 0 days, 50% due in 30 days*.

> **The 100% rule.** When you save a term, Hitaji checks that the portion percentages of all rows sum to 100 (within a tiny rounding tolerance). If they don't, the save is rejected — e.g. *"PaymentTerm rows portionPercent must sum to 100, got 90"*.

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## Creating a payment term

1. Go to **Settings → ERP / Finance → Payment Terms** (`/settings/erp/finance/payment-terms`).
2. Click **Add Payment Term**.
3. Give it a name, add one or more instalment rows, and (optionally) mark it as the default.
4. Save.

> 📷 *Screenshot: Create-payment-term form with the instalment rows table and the "Set as default" toggle — to be added.*

### Fields

| Field                        | Required | Notes                                                                                                                                              |
| ---------------------------- | -------- | -------------------------------------------------------------------------------------------------------------------------------------------------- |
| **Name**                     | Yes      | A readable name, e.g. "Net 30" or "50/50 — 30 days". **Unique per business.** Max 100 characters.                                                  |
| **Description**              | No       | Free text explaining the term.                                                                                                                     |
| **Rows**                     | Yes      | At least one instalment row. Portions across rows must total **100%**.                                                                             |
| **— Order**                  | Yes      | The display/sort order of the row.                                                                                                                 |
| **— Due days after invoice** | Yes      | Days after issue date for this portion to become due. Use `0` for "due immediately".                                                               |
| **— Portion percent**        | Yes      | This instalment's share (0–100).                                                                                                                   |
| **— Discount percent**       | No       | Optional early-payment discount for this portion.                                                                                                  |
| **— Discount days after**    | No       | Days after issue the discount stays valid.                                                                                                         |
| **Default**                  | No       | Mark this term as the business default. Setting a new default automatically clears the previous one — there is only ever one default per business. |

***

## How terms turn into due dates and instalments

When you choose a payment term on an invoice or bill and the document is **submitted**, Hitaji expands the term into a **payment schedule** — one schedule row per instalment. For each instalment it calculates:

* **Due date** = the document's issue date **plus** the row's *due days after invoice*.
* **Amount** = the grand total **×** the row's *portion percent*, rounded to two decimals.
* **Discount deadline** (if a discount is configured) = issue date **plus** *discount days after*.

Each schedule row then tracks its own **paid** and **outstanding** amounts. As payments come in, Hitaji applies them against the schedule rows in order — filling the earliest instalment first, then the next — so you can always see which instalment is settled and which is still owed.

> **Worked example.** A 2,000,000 invoice issued 1 June with a "50% now / 50% in 30 days" term produces two schedule rows: 1,000,000 due 1 June, and 1,000,000 due 1 July. A 1,200,000 receipt clears the first row fully (1,000,000) and applies the remaining 200,000 to the second, leaving 800,000 outstanding on the July instalment.

This instalment schedule is what powers due-date tracking, ageing, and overdue reminders for the document.

***

## Editing a payment term

Open a term and change its name, description, rows, or default flag. If you edit the rows, they must still total **100%**, and the name must remain unique within the business. Changing a term affects documents created afterwards; schedules already generated on existing documents are not retroactively rewritten.

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## Deleting a payment term

A payment term is **soft-deleted**. **You cannot delete a term that is still in use** — if any invoice or bill references it, Hitaji blocks the deletion with a count, e.g. *"PaymentTerm 'Net 30' is referenced by 8 invoice(s)/bill(s) and cannot be deleted"*. Remove the term from those documents (or simply stop using it) before deleting.

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## A note on "Terms & conditions templates"

Payment **terms** (this page) are about *due dates and instalments*. They are distinct from **terms-and-conditions templates** — the blocks of legal/footer text you print at the bottom of a quotation or invoice. Those template texts are managed separately and are not the same thing as the due-date terms described here.

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## Access & permissions

* **Viewing** payment terms requires the `accounting:read` scope.
* **Creating, editing and deleting** payment terms requires `accounting:admin` or `accounting:config`.

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## Related

* [Customers & Vendors (Contacts)](/accounting/user/masters/contacts)
* [Tax codes](/accounting/user/masters/taxes)
* [Withholding tax](/accounting/user/masters/withholding-tax)
* [Categories](/accounting/user/masters/categories)